Kohl’s CEO fired after policy breach involving undisclosed conflicts in vendor deals.
Ashley Buchanan has been let go as CEO of Kohl’s, just four months after stepping into the role. The company announced his departure on May 1, saying he had broken internal rules by getting the company involved in vendor deals where there were hidden personal ties, equating to an internal policy violation. Though the statement didn’t go into full detail, it did say the issue didn’t affect the company’s finances or involve any other employees.
This sudden exit after the policy violation is just the latest in a string of problems for the Wisconsin-based retailer, which has been struggling for some time. Buchanan was the third CEO to lead the company in four years, a sign of how unstable things have been. During his short time there, the company was already dealing with falling sales, store closures, and a stock price that’s been cut in half since early 2024. Even though he was only around for a short period, Buchanan’s pay was far from small. With salary and stock included, his total compensation topped $20 million, which was much higher than what the previous CEO, Tom Kingsbury, had received.
The person stepping in for now is Michael Bender, who had been on Kohl’s board since 2019 and became its chair in May 2024. He’s not new to the retail world. Bender used to run Eyemart Express, an optical retail company, and also held leadership roles at Walmart before that. While he fills in as CEO, he’ll keep his spot on the board but step away from a few board committees. The company said a new chair will be named later on.
Before Buchanan came to Kohl’s, he was CEO of Michael’s, the craft supply chain. There, he helped arrange a sale of the company to private equity buyers. At Kohl’s, he stepped into a tough spot during one of the busiest times of year — right before the holiday shopping season. And the numbers didn’t look good. In March, Kohl’s reported a drop of more than 9% in sales and a 74% drop in profits for the last quarter of 2024.
The retailer’s troubles don’t stop with leadership changes and poor earnings. It has been closing stores and cutting back in other areas, all while trying to figure out how to compete in a changing retail world. Shoppers have more choices than ever, and companies like Kohl’s, which once drew big crowds to physical stores, are feeling the pressure.
Still, the company is far from small. It remains one of the biggest businesses in Wisconsin, with thousands of employees just in the Milwaukee area and many more around the state. In fact, Kohl’s made it to number 235 on the 2024 Fortune 500 list, which ranks companies by revenue. That gives a sense of just how large the business remains, despite its problems.
For now, the company is focused on finding a new leader after the policy violation to help turn things around. While they search, Bender is in charge. Whether he stays long-term or just helps with the transition remains to be seen. The board says it trusts him to guide the company through this period and keep things steady for both workers and investors. But with a recent CEO fired, profits down, and a business still looking for solid footing, there’s no question that Kohl’s is in a difficult spot. What happens next could shape its future for years to come.
Sources:
Kohl’s fires CEO Ashley Buchanan for conflicts of interest. He was hired in January
Kohl’s fires CEO Ashley Buchanan for conflict of interest with vendors
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